'Rattled' Blair set to relaunch New Labour

Rattled Tony Blair will stage a dramatic relaunch of his Government this week after admitting that it has been damaged by the row over Labour donors and spin doctor Jo Moore.

A hand-picked group of Labour supporters has been invited to a secret location in London on Tuesday where the Prime Minister will stage an election-style rally in an attempt to boost party morale.

The move follows a Cabinet summit at Chequers on Friday, where Mr Blair told Ministers to 'get a grip'.

The Government has been rocked by the continuing row over its links with Indian steel magnate Lakshmi Mittal and the controversy over Jo Moore, former spin doctor to Transport Secretary Stephen Byers. The Prime Minister told Ministers to put a stop to the war between civil servants and Labour spin doctors --officially called special advisers - like Moore.

'We have to realise that these things make a difference to people's confidence in politics,' he said. 'It can be very damaging. It is essential that special advisers, civil servants and Ministers have a good relationship. If we don't learn from what has happened we will be making a mistake.'

The Prime Minister's woes piled up when TUC General Secretary John Monks hinted yesterday that the unions might switch to the Tories at the next Election unless the Government gave workers a better deal. 'I warn the Governmentof the risk of haemorrhaging-trade union support at the polling booths,' said Mr Monks.

'If the Conservative leadership had the wit to move to the centre and embrace strong defence of good pensions and rail nationalisation, it could occupy space to the left of Labour and gain huge advantage.'

Mr Blair also faced a growing backbench revolt yesterday over his support for US plans to attack Saddam Hussein. Former Transport Minister Glenda Jackson said: 'A pre-emptive strike on rumour may be a political imperative as far as the United States is concerned, but it seems immoral and extremely dangerous to me.'

The Prime Minister faces a rough ride at this week's summit of European leaders in Barcelona. French ministers accused Bush and Blair of pursuing a ' Texanstyle foreign policy'.